It is a Saturday and I was determined to find some good news. Here is what we can do if we put our pedal to the metal. I could trot out all of the unfriendly foreign governments that are buying up our infrastructure such as oil refineries, Uranium mines, and wonder why Russia is into our steel business, but I want to give it a rest. Let us just take a bit of a victory lap on this one.
The Detroit News reports this afternoon that the Obama administration is canceling subsidies to Russian steel firm Severstal for production of advanced high strength steel for autos in Dearborn, Michigan. Pricetag: $730 million… (h/t William Amos)
Russian steel maker’s North American subsidiary will no longer be receiving a $730-million loan to produce advanced high strength steel for autos in Dearborn.
A U.S. Department of Energy official confirmed today that after reviewing Severstal North America’s project — which received a conditional loal commitment under the agency’s Advanced Technology Vehicle Manufacturing program months ago — it was decided that the agency would not award the funding after all.
But it’s GOP watchdogs who raised questions about the deal last fall. The Hill:
The planned loan had come under attack from several GOP lawmakers, including House Oversight and Government Reform Committee Chairman Darrell Issa (R-Calif.), and some of Severstal’s steel industry competitors. Sen. Dan Coats (R-Ind.) applauded the decision not to move forward.
“This announcement is a victory for taxpayers and steel manufacturers in Indiana,” he said in a statement. “The Severstal loan commitment never passed the sniff test, as multiple producers are already manufacturing this high strength steel without taxpayer financing.”
The rejection of the Severstal financing also comes amid wider GOP criticism of DOE loan and loan guarantee programs following the collapse of solar panel manufacturer Solyndra last year.
Much more and a H T: Michelle Malkin>
